Correlation Between Goldman Sachs and Nomura Holdings
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Nomura Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Goldman Sachs and Nomura Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Goldman Sachs and Nomura Holdings, you can compare the effects of market volatilities on Goldman Sachs and Nomura Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Goldman Sachs with a short position of Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Nomura Holdings.
Diversification Opportunities for Goldman Sachs and Nomura Holdings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Nomura is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and Nomura Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings and Goldman Sachs is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Goldman Sachs are associated (or correlated) with Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Nomura Holdings go up and down completely randomly.
Pair Corralation between Goldman Sachs and Nomura Holdings
Assuming the 90 days horizon The Goldman Sachs is expected to generate 0.84 times more return on investment than Nomura Holdings. However, The Goldman Sachs is 1.19 times less risky than Nomura Holdings. It trades about 0.11 of its potential returns per unit of risk. Nomura Holdings is currently generating about 0.08 per unit of risk. If you would invest 28,305 in The Goldman Sachs on August 29, 2024 and sell it today you would earn a total of 29,125 from holding The Goldman Sachs or generate 102.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Goldman Sachs vs. Nomura Holdings
Performance |
| Timeline |
| Goldman Sachs |
| Nomura Holdings |
Goldman Sachs and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Nomura Holdings
The main advantage of trading using opposite Goldman Sachs and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Nomura Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nomura Holdings will offset losses from the drop in Nomura Holdings' long position.| Goldman Sachs vs. CDL INVESTMENT | Goldman Sachs vs. PennantPark Investment | Goldman Sachs vs. Chuangs China Investments | Goldman Sachs vs. Perseus Mining Limited |
| Nomura Holdings vs. Chiba Bank | Nomura Holdings vs. REVO INSURANCE SPA | Nomura Holdings vs. PT Bank Maybank | Nomura Holdings vs. OAKTRSPECLENDNEW |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |